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I have to ask forum participants a scenario that I've been struggling with...I'll keep it generic...We all know that a couple of recently released Lionel engines have been popular driving a supply and demand issue . This resulted in some price gouging above MSRP from a handful of retailers. Here's a scenario...If you call a couple of retailers and speak to the owners (that you purchase from regularly)  and ask if they have the sought after item in stock and they tell you "I was shorted and searching for some.." or "Nope all gone! Sold out!" only to find out a week later that both retailers list the item on their web site $250.00 and $200.00 over retail.  You personally email both retailers politely and professionally to express your disappointment. They do not reply. Should some basic customer service loyalty apply? Do you take your future preorders elsewhere? Do you consider it as just business? It amazes me the greed for one item and a couple of hundred dollars could possibly cost them thousands of dollars in future orders.  So based on that scenario...how would you feel?What would you do?

Sunrise

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If I do not like the price any dealer wants, I ask for a lower price for a Cash sale.

If they say no, I wish them luck and move on.

Everything I have wanted has in time dropped to want I am willing to pay.

These are not "One of a Kind" old master paintings but mass produced adult toys.

Sadly there are fewer model train buyers out there every year so prices will come down as demand weakens.

Last edited by totrainyard

Capitalism 101. Free country, free choices.

I guess you were sleeping when sports cars and watches traded at 2x MSRP during COVID through authorized dealers. A lot of folks chose to take their business elsewhere and vowed never to return. Even at that I never heard of any of those dealers going BK due to loss of revenue.

At the end of the day you should do what you believe is right and stick to it. This is about your own fundamental values.

A friend of mine was gouged by a dealer on an item he wanted to buy a few years ago. It was, according to the dealer, the only one of that particular item left anywhere in the U.S., and the dealer inflated the price substantially because of that, and because the dealer knew my friend "really wanted it." Some may say that was not price gouging because my friend willingly handed over his money for the item. He could have walked away, but chose not to.

If I were in your shoes, I wouldn't do business with the dealers you had the encounters with no matter how badly you "gotta have it," to quote Joe McDoakes. Whatever it is you're after, it will likely show up on the secondary market, either at a show or online.

Capitalism 101. Free country, free choices.

I guess you were sleeping when sports cars and watches traded at 2x MSRP during COVID through authorized dealers. A lot of folks chose to take their business elsewhere and vowed never to return. Even at that I never heard of any of those dealers going BK due to loss of revenue.

At the end of the day you should do what you believe is right and stick to it. This is about your own fundamental values.

To me a one time purchase is different then a long history of doing business. Wasn't sleeping my during COVID my friend...actually refused to pay the dealer "Market Adjustment" Guess what?  When things were slowing down...they sure knew how to pick up the phone.. and guess what response they got.

Sunrise

To me a one time purchase is different then a long history of doing business. Wasn't sleeping my during COVID my friend...actually refused to pay the dealer "Market Adjustment" Guess what?  When things were slowing down...they sure knew how to pick up the phone.. and guess what response they got.

Sunrise

I totally agree on the relationship part, but they were doing this to long time clients too.

I’m glad you have long term memory recall and refused to go back to them for business. That’s how I do it too. The reality is that pulling your business from these establishments will not make a dent in their bottom line as there are many more people without strong convictions still shopping with them.

My point is that we should avoid those who don’t respect long term relationships and stay true to our moral compass and take satisfaction in bringing business to those who think in a similar way.

Two years ago I observed that a well-known OGR-advertised seller--who I've bought many trains over the years-- was offering a particular engine for a couple hundred above MSRP.  Frankly, I was a bit surprised and a bit disappointed but I was able to find the same engine at a discount through a different OGR-sponsor vendor.   

In answer to your questions:

Should some basic customer service loyalty apply? Not really unless you are talking about a small mom and pop store that really knows you and appreciates your past purchases. Many vendors do large numbers of mostly online sales and run a business on tight margins. They can do what they want.

Do you take your future preorders elsewhere? No. Even though I was a bit dismayed I still buy from this seller. To not buy would be akin to "cutting off one's nose to spite one's face."

Do you consider it as just business? Yes, as long as MTH and Lionel voice no objections to selling above MSRP....even though I may not like it.  If they find buyers for the elevated prices, the business is responding to a market need.

What would you do? I continue to buy from a myriad of OGR-sponsored dealers. I simply do comparison shopping among them for the best deal on each product as well as return policy.

I feel like over a long enough timeline we'll all have a bad experience with every dealer we work with. Damaged deliveries, poor shipping, delays, pricing issues, these things happen. If you have a track record with them and can see the bad experience as an exception rather than a rule, maybe the sting fades over time.

When it really hurts the dealers is when the bad experience is the FIRST experience. I had a well-known dealer that I'd never done business with fail to ship one of the items in my order and it took me almost a month to even get someone to acknowledge my e-mails and phone calls. In that case there IS no track record, and I won't do business with them again.

I think manufactures today make it really difficult for dealers.  Believe me the manufactures nickel and dime the dealers everyday and I'm not a dealer.

This  comes from working in the electrical wholesale business. 

If the dealer raises the price its probably to make up for something the manufacture charged him/her for .

Good business should involve building and maintaining relationships.   If the vendor is purely transactional and you can find alternatives vote with your dollars and move on.  Unfortunately you expected something.  When you expect something you set yourself up for disappointment.   Conversely,  if you have no expectations you just might be delighted with the outcome..

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